In Defense of Bonds

Pimco's Doug Hodge argues that fixed income remains safer than stocks, and that investors will return to bonds.

An inflection point occurs when the slope of a curve changes from plus to minus or minus to plus.

Financial markets are populated with inflection points. They mark directional changes in trends that can be sharp or gradual, short or long, trivial or consequential. One of the keys to successful investing is the ability to identify inflection points and predict whether underlying trends will accelerate, reverse or level off.